The cuts will effectively end the UK industry beyond the domestic sector, critics of the proposals have said, just as other major EU economies plan a massive increase in solar installations to meet the rising demand for electricity that is expected by 2020.

Shadow energy minister Huw Irranca-Davies said: "Minister Greg Barker's decision to go ahead with the proposed dramatic Feed-In Tariff reductions for community, school and hospital schemes is a big blow to British industry and betrays the government's promise to be 'the greenest government ever'."